Insurance Agency M&A Activity in North America Continues Downward Trend

Insurance agency mergers and acquisitions in the U.S. and Canada continued to decline in the first quarter of 2026, reaching their lowest first-quarter level in a decade. This ongoing trend reflects changes in deal activity and buyer participation across the sector.

The number of announced insurance agency M&A deals in Q1 2026 fell to 148, representing a 6% decrease compared to the same period in 2025. This marked the tenth consecutive quarter where deal volume remained below the long-term average, indicating a sustained period of reduced transaction activity.

According to OPTIS Partners, the annual number of deals has stabilized at approximately 650 per year, following a three-year period of declining volumes. In 2025, a total of 695 insurance agency M&A deals were recorded, which was a 12% drop from the 787 transactions reported in 2024.

Private equity-backed firms played a substantial role in the M&A market during the first quarter of 2026. Of the 55 unique buyers active in this period, 29 were backed by private equity, and these buyers were responsible for 72% of all announced transactions.

What the numbers show

• 148 insurance agency M&A deals were announced in Q1 2026, down 6% from Q1 2025
• 2025 saw 695 deals, a 12% decrease from 787 in 2024
• Property and casualty agencies made up 68% of Q1 2026 sellers, or 101 of 148 transactions
• Inszone Insurance Services led buyers in Q1 2026 with 17 deals
• BroadStreet Partners followed with 16 deals in the same period

Property and casualty agencies remained the most common type of seller in the first quarter of 2026. These agencies accounted for 68% of all sellers, representing 101 out of the 148 transactions during the period.

Inszone Insurance Services was the most active buyer in Q1 2026, completing 17 deals. BroadStreet Partners followed closely, participating in 16 transactions over the same timeframe.

OPTIS Partners estimated that there are between 25,000 and 30,000 independent insurance agencies operating nationally. The majority of these agencies are small and, according to OPTIS Partners, are likely to be sold at some point in the future.

The Q1 2026 deal volume was the lowest for a first quarter since 2016, reflecting a continued slowdown in activity. Despite this, OPTIS Partners stated that the decline in deal volume appears to be leveling off, with annual volumes stabilizing after several years of decreases.

* This article is based on publicly available information at the time of writing.